Sliding oil prices raise Malaysia's default risk

Kuala Lumpur

MALAYSIA'S default risk is heading for the longest rising streak in a year after Prime Minister Najib Razak said that sliding oil prices mean the government will miss deficit and growth targets.

The cost of protecting sovereign debt against non-payment has leapt 21.5 basis points since Dec 31 to 127.5, set for a third straight monthly advance, according to data provider CMA. That's higher than for similar or lower-rated nations including Thailand at 105.5 basis points, the Philippines at 91.5 and Mexico at 114. The cost for Indonesia, ranked three steps lower, stood at 151.